The Black Litterman model: how to use it

The Black Litterman model was developed in 1990 at Goldman Sachs by Fischer Black and Robert Litterman and published in 1992. It is a sophisticated portfolio construction method that overcomes the problem of unintuitive, highly-concentrated portfolios, input-sensitivity, and estimation error maximization, in applying modern portfolio theory in practice. The model uses a Bayesian approach to combine the subjective views of an investor regarding the expected returns of one or more assets with the market equilibrium vector of expected returns to form a new, mixed estimate of expected returns. The resulting new vector of returns leads to intuitive portfolios with sensible… Continue reading

The modern portfolio theory: how to use it

Modern portfolio theory (MPT) or mean-variance model was developed by Harry Markowitz and published in 1952 by the Journal of Finance. It is an investing model that enables risk-averse investors to maximize returns for a given amount of risk or minimize the risk for a given amount of returns. For developing the MPT he was later awarded a Nobel prize. The risk of every investing portfolio returns has two components: systematic risk and unsystematic risk. The first is the market risks that cannot be diversified away. The second the specific risk of a stock and can be diversified away by… Continue reading

The best and worst countries to live in 2020

The quality of life in 2020 has dropped in all the countries in the world. This is going to be a very tough year for the world, so there are necessary concerted and decisive response to the global and local problems. This work will not be focused on the problems that all the countries in the world are facing now and not even on the necessary solutions, but will be focused on the ranking of the countries by quality of life. Many people think that quality of life is the same of GDP per capita, but this is not true…. Continue reading

The world’s most valuable brands 2020

A brand is an intangible asset of a business, and helps in differentiating between a company’s book value and market value. Calculating the value of a brand is not simple, because due to its intangible nature, the power of a brand can be difficult to translate to a balance sheet. Knowing the brand value is fundamental for every company to know its brand value and there are a number of methods to measure the brand value of a company, but in this work, we are not going to focus on how to measure the brand value, but we are going… Continue reading

Top 35 Canadian insurance companies by assets

The Canadian insurance market in general has changed significantly over the last two years, with insurers taking a far more disciplined approach to underwriting beyond merely looking at price adequacy. Across the board, insurers are reducing their limits where appropriate, exiting certain industry segments, and reducing coverage. In this work, we are going to present the rank of the 35 largest insurance companies in Canada by total assets, which still remains today, one of the most widely used indicators for comparing banks with each other. Let’s now see the 35 largest insurance companies in the Canada by assets. In the… Continue reading

Ranking of stock exchanges in the world 2020

In the last years, many stock exchanges have reached impressive dimensions compared to the past, while others have become smaller. There are several factors that have led to these results, but they will not be analysed in this work, which will be focused on the realization of the ranking of the largest stock exchanges in the world. In this post, we are going to rank the stock exchanges by market capitalization and number of listed companies. The capitalization of a stock exchanges is given by the sum of the market cap of all listed companies. The market capitalization, in turn,… Continue reading

How to use Fundamental Analysis for trading stocks

Investing in the stock markets is not simple and it is risky, but in the other side there are many opportunities to make money by investing. Before investing in stocks, it is necessary to create a solid financial plan, to determine the risk profile, to analyze the stocks, to create an optimal portfolio etc. One of the best methods to analyses the stocks is the fundamental analysis. It assesses the intrinsic value of a security by analyzing various macroeconomic and microeconomic factors. The ultimate goal of fundamental analysis is to quantify the intrinsic value of a security. Its intrinsic value… Continue reading

Ranking of Insurance Companies in Europe 2020

Compared to last year, most of the European Union’s insurance companies have grown in the stock market, consequently, their market capitalisation has also continued to grow. This work will not be focused on what’s happens in the insurance market, but will be focused in the realization of the ranking of largest insurance companies in Europe by market cap. As we know, market capitalization refers to the total euro market value of a company’s outstanding shares. Commonly referred to as market cap, it is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment… Continue reading

Ranking of Banks in Europe 2020

A lot of things happen in the last year, that changes the rank of the biggest banks in Europe. Some of these companies have become larger compared to last year, other have become smaller. This work will not focus on the analysis of what’s happen in the banking market, but will focus on the realization of the ranking of European banks in 2020, by market capitalization. As we know, market capitalization is just the market value of a company’s outstanding shares. This indicator is found by taking the stock price and multiplying it by the total number of shares outstanding…. Continue reading

Pension funds guide for beginners

A pension fund is any plan, fund, or scheme which provides retirement income and it is one of the most vital pieces of your long-term financial plan. Pension funds are pooled monetary contributions from pension plans set up by employers, unions, or other organizations to provide for their employees’ or members’ retirement benefits. They typically have large amounts of money to invest and dominate the stock markets where they invest. The pension fund is the best way to save for your future needs, so taking an early interest in pension planning will ensure that you are able to maintain your… Continue reading